Living Time is an investment within a drawdown plan which provides guaranteed income payments for a set number of years or until you reach age 75.
At the end of the period there will be a guaranteed maturity payout which
can be reinvested in a drawdown plan (alternatively secured pension if
past the age of 75) or an annuity.
The policy can be set up as a joint life policy or with a guaranteed income period. This means that if the policyholder dies before the policy matures, income payments
will continue, and for joint life policies there will be a guaranteed maturity value.
Who is behind Living Time?
It is a new kind of financial services company for people reaching
the end of their full time working lives. In conjunction with AIG Life they have
developed a new range of income products for life after work which allow
you to take a regular income with greater flexibility than traditional
lifetime annuities.
How Living Time works
Living Time Plans allow you to choose from a range of income
and death benefit options now, as well as deciding what maturity amount
you wish to have returned at the end of the term.
The following guarantees are available:
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Living Time Plans guarantee that your income is secure, subject to
Government income limits not being exceeded
- The Plans guarantee to provide a predetermined maturity amount at the
end of the Plan term. Depending on your age at that time, this amount
can either be used to buy a lifetime annuity from an annuity provider of
your choice, or a further post-retirement pension product. Unfortunately,
pension rules mean that you cannot take the cash!
- Should you so choose, the Plans guarantee that your investment will
not die with you. Your spouse / civil partner can receive an income or
lump sum or it may be possible to provide a lump sum to a nominated beneficiary
| | Advantages |
| The risks | |
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If your future circumstances change you have the flexibility
to choose the appropriate options when your plan reaches maturity |
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If you die before the end of the plan term the maturity amount will not be payable
unless you have selected death benefit options. |
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You may benefit from the opportunity potentially to obtain a higher income in the
future if your health has worsened during the term of your Living Time Plan |
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The amount of annuity income will be dependent upon
annuity rates at that time, which may be better or worse than current rates |
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Living Time combines some of the advantages annuities with some of the advantages
of drawdown |
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Living Time Plans are NOT suitable for those who want the certainty of a
guaranteed fixed income for the rest of their lives |
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The Living Time 75 Plan and Living Time Income Plan are underwritten by AIG Life |
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The Living Time 75 Plan
Your pension fund is invested with Living Time and in return you will
receive a regular income until you reach the age of 75. At this
time AIG Life will pay a maturity amount which must be used to buy a lifetime
annuity or ‘alternatively secured pension’ with a provider of your choice.
If you die before you reach 75 AIG Life, income payments will continue
if death benefits had been selected. The Living Time 75 Plan provides:
- A regular income up to the age of 75, between nil and the maximum
the Living Time 75 Plan allows. These amounts are within the minimum and
maximum allowable by legislation
- A guaranteed maturity amount on the day before your 75th birthday. This must
be used to purchase an annuity or it can be invested in an alternatively
secure pension.
- You can choose a guaranteed death benefits from a minimum of £nil
to a maximum of the return of your initial investment, less any income
payments made before tax
The Living Time Income Plan
The Living Time Income Plan shares the same product features as the Living
Time 75 Plan, but with greater flexibility. AIG Life still provide you
with an income and death benefits if required, as well as a guaranteed
maturity amount. These can be tailored to suit your needs.
The first difference is that you can choose the term of the investment, anything
up to the day before your 75th birthday with a minimum of 5 years. In contrast
the Living Time 75 Plan always runs until the day before your 75th birthday.
You can also choose to take a higher income than that available in the
Living Time 75 Plan up to the maximum allowable by legislation. This is
currently about 20% more than offered by the Living Time 75 Plan. Please
note that a higher income will result in a lower maturity amount.
As with the Living Time 75 Plan you are free to reinvest your money at the end
of the term in another pension product with a provider of your choice. If you
are under age 70 when your Living Time Income Plan matures you can buy
another Living Time Plan.